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New Zealand Gazette – 2005 – No. 115

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✨ Financial Performance Measures

2774

NEW ZEALAND GAZETTE, No. 115

3 AUGUST 2005

SCHEDULE 1—PART 7

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

Derivation Table	Input and Calculations	Symbol in formula	ROF	ROE	ROI
Operating surplus before interest and income tax from financial statements	f` = 4,338,735
Operating surplus before interest and income tax as used pursuant to regulation 18 (OSBIT):	f` - r =		4,334,509		4,334,509
Interest on cash, bank balances, and short-term investments (ST):	r = 4,226
OSBIT minus ST:	a = 4,334,509	a	4,334,509	4,334,513
Net surplus after tax from financial statements	n = 2,263,661	n		1,253,059
Amortisation of goodwill and amortisation of other intangibles	g = -	g	adc	adc	adc
Subvention payment	s = -	s	adc	adc	0
Depreciation of SFA at BV (x)	x = 13,754,706
Depreciation of SFA at ODV (y)	y = 3,754,700
ODV depreciation adjustment:	d = x - y	d	adc		0
	= 10,000,006
Subvention payment tax adjustment	s`= - \| s`
Interest tax shield	q = 344,244	q	deduct	344,244
Revaluations	p = 2,042,512	p
Income tax	t = 434,340,808	t		1,253,059
Numerator
ROF^(AD) = a + g + s + d
NSAT^(AD) = n + g + s` + d
OSBIT^(AC) = a + g + q + r` + s + d - p - st
Fixed assets at end of previous financial year (FAp):	21 = 189,026,915
Fixed assets at end of current financial year (FAc):	22 = 134,502,752
Adjusted net working capital at end of previous financial year (ANWCa):	23 = 2,051,833
Adjusted net working capital at end of current financial year (ANWCy):	24 = 282,415,569
Average total funds employed (ATFE):	c = 114,502,843	c	114,502,843
Total equity at end of previous financial year (TEp):	25 = 59,045,003
Total equity at end of current financial year (TEc):	26 = 85,006,252
Average total equity:	k = 72,025,628 (for regulation 33 time-weighted average)	k
MWUC at end of previous financial year (WUCp):	28 = 17,735,691
MWUC at end of current financial year (WUCc):	29 = 68,162,517
Average total works under construction:	e = 42,949,104 (or regulation 33 time-weighted average)	e
Revaluations:
Half of revaluations:	r1 = -
	r2 = -
Intangible assets at end of previous financial year (IA):	30 = 29,782
Intangible assets at end of current financial year (IAc):	31 = 77,767
Average total intangible asset:	m = - (or regulation 33 time-weighted average)
Subvention payment at end of previous financial year (Sp):	32 = -
Subvention payment at end of current financial year (Sc):	33 = -
Subvention payment tax adjustment at end of previous financial year:	34 = -
Subvention payment tax adjustment at end of current financial year:	35 = -
Average subvention payment & related tax adjustment:	v = -
System fixed assets at end of previous financial year at book value (SFAbvp):	36 = 1,086,544,067
System fixed assets at end of current financial year at book value (SFAbvc):	37 = 1,110,336,905
Average value of system fixed assets at book value:	f = 1,098,440,486 (or regulation 33 time-weighted average)	f	108,566,530
System Fixed assets at year beginning at ODV value (SFAodvp):	39 = 106,550,140
System Fixed assets at end of current financial year at ODV value (SFAodvc):	40 = 10,849,570
Average value of system fixed assets at ODV value:	h = 108,707,807 (or regulation 33 time-weighted average)	h		108,707,807
Denominator
ATFE^(ROF) = c + e + f
ATFE^(ROE) = k - e - m + f + i
Financial Performance Measure:
ROF = OSBIT^(AD)/ATFE^(ROF) x 100			3.8
ROE = NSAT^(AD)/ATFE^(ROE) x 100				1.5
ROI = OSBIT^(AD)/ATFE^(AD) x 100					1.7

1 = maximum statutory income tax rate applying to corporate entities
2 bv = book value
3 ave = average
4 ODV = optimised deprival valuation; subscript ‘p’ = end of the previous financial year
subscript ‘c’ = end of the current financial year
ROF = return on funds
ROE = return on equity
ROI = return on investment

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